- This is the second term agreement sealed by ONGC after it signed a similar pact with BPCL last month for sale of 4-4.5 million tonnes per annum of crude oil.
- The term agreements were made possible after the government abolished a rule that required ONGC to sell oil from blocks awarded prior to 1999 to government-nominated customers, mostly state refiners.
- The rule change allowed ONGC to start quarterly auctions of crude oil from Mumbai offshore, but it faced pressure from refiners like IOC to offer discounts equivalent to those on Russian oil, which was sanctioned and shunned by some buyers due to Moscow’s invasion of Ukraine.
- ONGC prefers term contracts over auctions as it can get better market prices for its crude oil, which is closest in quality to Brent - the global benchmark.
Question:
Q.1 Which state refiner did ONGC sign a term agreement with for sale of crude oil from its Mumbai offshore fields?a. MRPL
b. BPCL
c. IOC
d. HPCL
